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Rich People Pay Better

Name: Rich People Pay Better
Uploaded: 2024-11-21T22:00:18+00:00
Duration: 31 s
Channel: Shanli Liu, CPA, CTP
Description: In this short monologue, the speaker shares an anecdote about a CRO (Conversion Rate Optimization) consultant who explains that a 10% performance…

21 Nov 2024 · 1 min

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In this short monologue, the speaker shares an anecdote about a CRO (Conversion Rate Optimization) consultant who explains that a 10% performance improvement yields vastly different absolute dollar gains depending on the client’s revenue size. For a $1 million‑a‑year e‑commerce store, a 10% lift adds $100 k, whereas for a $100 million store the same lift adds $10 million. Because the value created is proportional to the client’s scale, the consultant can charge far higher fees for the identical work. The speaker concludes that one of the most powerful levers for business success is to apply the same effort to larger or wealthier clients, as the monetary value—and thus the price you can command—grows dramatically.

Chapters

Can I tell another story? There was a CRO company that came through here that we were looking at to invest in. What was interesting is he and I had this conversation. He's like, oh yeah, when I work with a million-dollar-a-year e-commerce store and I, you know, raise their throughput by 10%, it only adds $100,000 to the business. He said, but when I go to an e-commerce store that does $100 million and I add 10%, it's the same amount of work. He's like, I add $10 million to the business. And so I can charge so much more money for the exact same work because in a very real way it is more valuable. I did create more value, but it wasn't because of me, it was because of them. And so one of the biggest levers you can have on success is doing the same work for better people.